Majority of APAC insto investors rethinking portfolios

A large majority of APAC institutional investors (62 per cent) are actively rethinking, redefining and reallocating or setting the reset button on their portfolios as they recognise the need to make significant changes in the current market environment, according to Nuveen's 3rd annual EQuilibrium Global Institutional Investor Survey.

The survey explores the insights and actions of 800 global institutional investors and also found 84 per cent of APAC investors agree that our world is changing dramatically and portfolio strategies need to keep pace, and 77 per cent said that the influence of geopolitics on investment strategies is more significant now than it has been over the last 30 years.

"The current environment has prompted investors to identify and take advantage of opportunities in sectors they may have previously overlooked," head of Nuveen's Global Client Group, Mike Perry said.

"They're also focusing on newer, evolving portfolio goals, such as climate risk and impact."

More than half (54 per cent) of APAC investors plan to increase portfolio liquidity over the next 12 months, with 79 per cent planning to increase allocations to private markets over the next five years.

Private equity was the most popular asset class for alternative allocations (chosen by 62 per cent of those surveyed), followed by infrastructure (61 per cent), real estate (54 per cent) and private credit (45 per cent).

"Investors are turning to infrastructure to help protect portfolios from inflation among other critical needs, such as increasing yield and mitigating climate risk," said Perry. "Infrastructure's ability to play multiple roles is a key driver of increased allocations."